Almost 80% of Square’s Cash App Q3 revenue was from Bitcoin

Square’s Cash App has increased Q3 Bitcoin revenue by 1,100% after more than $1.6 billion Bitcoin was purchased by users

Cash App, the Bitcoin-friendly mobile payments app from U.S. financial services firm Square, has reported Bitcoin (BTC) has overtaken all other revenue sources, making up almost 80% of its entire revenue in the third quarter.

In Square’s third-quarter report, Cash App’s Bitcoin-derived revenue of $1.63 billion in Bitcoin marked a massive increase of more than 1,100% when compared to the same period in 2019.

Bitcoin revenue was by far the largest component of Cash App’s overall revenue generation of $2 billion, with all other revenue streams totaling $453 million, or 22% of the total.

Cash App functions as a broker for Bitcoin purchases, buying it on behalf of the user, and adding a small fee.

The report notes that some of the increased Bitcoin sales were due to the app’s Auto-Invest tool, launched in May this year, which allows users to recurring daily or weekly purchases of stock or BTC.

Bitcoin revenue produced $32 million in gross profit for the third quarter, an increase of 15 times from the previous year’s profit of $2.1 million in the same period.

Square’s total Q3 revenue was more than $3 billion, up 140% from 2019 — of which Bitcoin comprised more than 50%. The total Bitcoin revenue for all of 2019 was $338 million with a gross profit of $5 million.

Hours after the report was released, Square’s share price rose 6% during after-hours trading to sit at $184, eyeing off the previous all-time high of $190 earlier this month. At the same time, Bitcoin rose by a similar amount to hit a two-year high of $15,880.

In the report Square also noted its $50 million Bitcoin (4,709 BTC) investment as a treasury asset, which is now worth $74.8 million. The company’s purchase was based on the belief that “cryptocurrencies are an instrument of economic empowerment and align with the company’s purpose,” adding:

“We expect to hold this investment for the long term.”

Despite Square’s large investment, the company ranks seventh in terms of publicly trading company’s Bitcoin holdings.

By continuing to use the site, you agree to the use of cookies. more

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close